J Safra Sarasin is set to purchase the bank's operations in Luxembourg, and the deal is expected to finalise in the first half of next year.

Israel-based Bank Hapoalim is set to cut 30 jobs at its Luxembourg operation, according to the Luxembourg Association of Bank and Insurance Employees (Aleba).

The news comes just months after this publication reported that J Safra Sarasin had signed an agreement to acquire Bank Hapoalim’s private banking businesses in Luxembourg and Switzerland, which operates as Bank Hapoalim Switzerland. The acquisition is expected to be completed during the first half of 2018.

In a statement in October, Bank Hapoalim said its qualifying clients and relationship managers in Luxembourg and Switzerland were set to join J Safra Sarasin, after the deal is completed.

However, according to Aleba, there may be some jobs cuts at the Luxembourg operation. 

The statement on Aleba’s website said: “It seems that the board of directors of the group based in Israel decided last September to cease all private banking activities in Switzerland and Luxembourg. The two group entities present in Luxembourg, ie Bank Hapoalim (Switzerland) Ltd., Luxembourg Branch and Banque Hapoalim (Luxembourg) , are affected by this decision and about 30 of the current 45 employees are at risk of losing their jobs. For some, these employees have contributed to the bank's prosperity in the Luxembourg financial market for decades.”

Union representatives of Aleba were set to meet with the management of Bank Hapoalim on Wednesday to discuss a social plan. 

This publication has contacted Bank Hapoalim about the job cuts, and will update in due course.